Is Tata Steel overvalued or undervalued?

As of 15 July 2025, Tata Steel's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 52.43, an EV to EBIT of 18.91, and an EV to EBITDA of 11.12. In comparison to peers, JSW Steel is rated fair with a PE of 67.15, while Jindal Steel is attractive with a significantly lower PE of 23.88, highlighting Tata Steel's relative valuation advantage.
Despite a recent decline in stock price, Tata Steel has shown strong performance over the longer term, with a 3-year return of 80.00% compared to the Sensex's 53.59%. This suggests that while the stock may have faced short-term challenges, its long-term growth potential remains robust, reinforcing the view that it is currently undervalued in the market.